Global Trade Alert

On 11 October 2011, the Chinese Ministry of Commerce (MOFCOM) released the Notice NO. 63(2011), announcing the 2012 import tariff-rate quota of fertilizers. The quota is 13.65 million tons, of which quota on ureais 3.30 million tons, quota of DAP is 6.90 million tons and quota of compound fertilizer is 3.45 million tons. The quota level for 2012 is kept at the same level with the quota of 2011.
 
On October 10, 2013, the Ministry of Commerce (MOFCOM) released the Notice NO. 70(2013), announcing the 2014 import tariff -rate quota of fertilizers (HS code: 31021000, 31052000 and 31053000). In accordance with this Notice, the quantity of 2014 import tariff quota of fertilizers is 13.65 million tons, among which, urea quota in 2014 is 3.30 million tons, DAP is 6.90 million tons and compound fertilizer is 3.45 million tons. The quota level for 2014 is kept at the same level with the quota of 2013.
 
In according with this Notice NO.70 (2013), quotas distinguishes between state owned enterprises and private companies:
 

Total Quotas (tons)

State Owned Enterprises (tons)

Private Enterprises (tons)

13,650,000

8,250,000

5,400,000

Among which:
urea quota 3,300,000

Among which:
urea quota
2,970,000

Among which:
urea quota
330,000

DAP
6,900,000

DAP
3,520,000

DAP
3,380,000

compound fertilizer
3,450,000

compound fertilizer
1,760,000

compound fertilizer
1,690,000

 
Considering the fact, that thequota levels are not increased since 2011 and the quota for 'urea' is mainly allocated to State Owned Enterprises,this measure is therefore considered trade distorting.